In an environment characterised by uncertainty, weak GDP growth and record low interest rates, European mezzanine investments can offer investors attractive floating base rates that address their need for yield, while protecting them from an inflationary interest rate environment.

In March of this year, members of the Wharton Private Equity Club coordinated a roundtable discussion between four influential lenders to talk about the currently robust debt markets, trends in the sub-debt markets, mezzanine, the impact of hedge funds, and ways firms can differentiate themselves from the competition, among other topics.

Cross-border private equity investments contain a variety of tax elements that complicate the structuring of those transactions. They also offer several opportunities to optimise the investors' and target's tax position after acquisition.

Asian mezzanine financing is demonstrating its value to private equity investors, as four of the five transactions that received this form of financing reported positive returns. The winds that come with a maturing buyout market have arrived in Asia, says the Asia Private Equity Review.

Several high-profile private equity firms have entered the public fund arena this year by sponsoring publicly offered funds focused on making mezzanine investments. Kenneth Berman, Colette Haider and Michael Whidden of Debevoise & Plimpton, address the question of what makes the BDC an attractive vehicle for mezzanine investment firms.

Bank of Scotland is a relative newcomer to private equity fund investing, although it has made direct investments for a number of years. It set up a fund of funds to invest from its own balance sheet three years ago.

Mezzanine has become an increasingly popular area of private equity for investors over the last few years. But just how far can the market grow? And how will the rising levels of capital flowing into the market affect returns? Amy Carroll reports.

The mezzanine market is booming. Both mezzanine funds and the amount of money being allocated to mezzanine financing are increasing. But how does mezzanine debt compare to the high yield bond market? When is it best to use mezzanine rather than a high yield bond? Stephen Mostyn-Williams of Cadwalader Wickersham & Taft takes a look at some of the comparables.

The number of mezzanine funds and the amount of committed mezzanine capital have increased significantly in recent years. A growing number of sponsors are also involved in forming these funds and structuring their investments. Debevoise & Plimpton takes a look at some of the tax issues to be aware of in this burgeoning corner of private equity.